Shares of chip maker ST Microelectronics (STM) are off 4 cents at $10.40 after the company this evening reported Q1 revenue of $2.33 billion, shy of the $2.39 billion average estimate of analysts, and profit per share of 7 cents, a penny shy of estimates.
For this quarter, the company forecast revenue growth to decelerate, from 40% this past quarter to a range of 24% to 31%, which would be $2.47 billion to $2.6 billion, slightly ahead of the $2.5 billion average estimate.
Revenue from the company’s chips in personal computers rose 59%, as sign of a broad-based electronics rebound, said president and CEO Carlo Bozotti. Gross profit as a percentage of sales was up 0.7 percentage points from Q4 as a result of greater fab utilization.
The company generated cash from operations of $176 million, a big improvement from the $139 million loss in the prior-year quarter.
Gross margin is expected to rise slightly this quarter, to 38%, the company said.
– Tiernan Ray, Barrons.com
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